Protecting your car in today's auto market can
be a frustrating process, and if not done correctly,
can result in major financial losses for you.
You have to understand that insurance companies
only pay what your car is worth, and in the event
of an accident, will be a difference, or GAP,
between what you owe and what your car is worth.
There are ways you can protect yourself and your
What is GAP protection? In
the event your car is stolen or totaled, your
insurance company will pay only what your car
is worth - not what you owe. If you owe more
than the total loss settlement, you have a GAP!
GAP protection covers what your insurance company
will not cover.
Why GAPS occur... All
new cars lose value rapidly at first. As the
years pass, the value continues to fall, but
at a slower rate. This is shown by the green
area in the chart on this page. The outstanding
balance of the loan or lease goes down very little
at first. With time, the balance owed goes down
at an increasing rate. As you see, there is quite
a GAP between the Actual Value and the Loan Balance.
Why you need GAP
protection. If you have
a total loss of your vehicle, your insurance
company will pay your car actual value
- not the total loan balance! This will
almost always be less than what you owe.
The Alliance Gap Protection program will
pay the difference between what the insurance
company pays and your loan balance, AND
will even pay your deductible.
How can I get GAP
protection? We can include
GAP protection with your new vehicle. We
can even add GAP protection for vehicles
you already have. Just talk to your Alliance
Representative at the Credit League.